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Salessio0564
Level 2

Unapplied cash payment income

There is a payment and 2 deposits in unapplied payment income. How can I clear these transactions from the profit and loss statement? 

3 Comments 3
James_AL
QuickBooks Team

Unapplied cash payment income

Hello there, @Salessio0564.

 

I'm here to assist with sharing insights on how to clear unapplied payments in QuickBooks Online.

 

When generating a profit and loss report using the cash method, you may come across unapplied cash payment income. This account is established to ensure precise tax reporting. To begin resolving these entries, start by running your open invoice reports.

 

Here are the steps that you need to follow:

 

  1. Login to QuickBooks Online.
  2. In the left navigation bar, go to Reports.
  3. Enter Open Invoices in your Find report by name field.
  4. Set a Report period and then Click Run report.
  5. Locate the transaction listed as a Payment in your Transaction Type column. If it matches an open invoice, continue with steps six through eight. In the event it doesn't match anything, you'll need to create a transaction list.
  6. Choose a payment date to open.
  7. Under Outstanding Transactions, pick an open invoice.
  8. Select Save and Close.

 

If the Payment transaction doesn’t match an open invoice you can follow Step 3.

 

After completing this process, you can generate a new profit and loss report, and the unapplied income will no longer appear.

 

You can also refer to this article to understand more about the unapplied cash payment income on your reports: Unapplied Cash Payment Income on Profit and Loss Report in QuickBooks Online.

 

I've also added this article helpful in providing a different report you can use to determine the status of your accounts, financially: How does QuickBooks Generate Reports?

 

If you have any other questions about unapplied cash payment income, let me know by adding a comment below. I'm always here to help. Keep safe!

Salessio0564
Level 2

Unapplied cash payment income

There are no open invoices for these transactions. The transaction type on both deposits are “Deposit”. Do I need to change the transaction type if I have to create an invoice for these 2 payments? Also, payment method is blank. Should this be changed to “Check” as payment method, so when I create a new invoice I can link it as receive payment? 

MAnneJ
QuickBooks Team

Unapplied cash payment income

There's no need to change the transaction type, @Salessio0564. Let me chime in and add details about these transactions.  

 

Since there aren't open invoices, we can skip to step 3 of the Unapplied cash payment income on your profit and loss article my colleague provided. 

 

Here's how:  

 

  1. Open your QuickBooks Online (QBO) account.
  2. Go to the +New icon. 
  3. Under Customers, pick Invoice.
  4. Fill out the necessary details with the customer's name, amount, and date as the payment.
  5. Once done, click Save and close
  6. Find the unapplied payment, then select the date to open.
  7. Under Outstanding Transactions, check the open invoice.
  8. Select Save and close
  9. Repeat step 2 for the other one. 

 

After rerunning the Profit and Loss report, the unapplied cash payment income will no longer be visible. 

 

Moreover, about the blank payment method, you'll have to change depending on whether you want to select check, cash, ACH, etc. 

 

I've also added an article if you want to customize and add specifics to your sales forms in QBO.  

 

I'd be glad to lend a helping hand if you need further assistance with managing your transactions in your P/L report. Just add them in the comments, and I'll respond to them. Have a good one.

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